What business can be started 5000

Berlin plans to limit cash payments to 5000 euros

The political plans are not met with unanimous approval. Germans are hungry for cash and retailers fear losses.

Is the end of cash coming soon? Now the German government is planning to introduce a limit for cash payments of 5000 euros. The Federal Ministry of Finance in Berlin justified the plan according to the "Frankfurter Allgemeine Zeitung" with the fact that the world after the attacks in Paris was no longer the same as it was before. Such an upper limit could not only better prevent illicit transactions and tax evasion. Money laundering would be made much more difficult because large sums can only be made through account and bank details that can be traced. One must take note of the fact that cash, along with pre-paid cards, is an important vehicle for terrorists, according to the ministry.

According to an SPD position paper, the party no longer sees any plausible reasons above the upper limit of 5000 euros for wanting to do business with cash. Germany is a popular destination for international organized crime and the mafia. It is not about the abolition of cash, but about combating money laundering and tax fraud on a large scale, said North Rhine-Westphalia's Finance Minister Norbert Walter-Borjans (SPD). “As far as I am concerned, anyone can put their money in the cellar in cash. Paying only high bills should be linked to the obligation to make a bank transfer. "

No further restrictions on existing cash limits are currently planned in Austria. This was announced by the Ministry of Finance. "Austria has already taken several steps against tax fraud and terrorist financing," said the German plans.

Bundesbank against upper limit

The Deutsche Bundesbank has so far vigorously opposed all attempts to push back cash in Germany. Bundesbank President Jens Weidmann has expressed skepticism about the attempts to abolish the 500-euro note and to introduce an upper limit for cash payments. "To what extent a ban on larger cash transactions prevents illegal activities is also an open question," said Weidmann.

Naturally, criticism comes from retailers. Such plans could send a negative signal about the use of cash, said Ulrich Binnebößel from the German Trade Association (HDE). The unrestricted acceptance of cash should remain so "as long as the customer wishes to pay with notes and coins". In addition to car dealers and jewelers, a change would also affect furniture dealers, cash and carry wholesalers and certain textile dealers and specialty stores in the luxury segment.

3000 euros in Italy

The Germans are said to be very loyal to cash. According to a survey last year, three quarters of those questioned were against following Denmark's step and allowing retailers to accept cash in the future. The Germans - as well as the Austrians - hang on banknotes and coins. While Sweden and Denmark are radically digitizing their payment transactions, people in Germany and Austria still mainly pay in cash.

Where the right to privacy ends is currently being discussed in Brussels. Many Member States already have caps on cash transactions. Italy has already increased theirs: Rome started with an upper limit of 1000 euros, but then had to accept that it was too low. After tripling the amount, you should now even consider 5000 euros to be appropriate. In any case, the EU Commission is not planning any specific proposals for new upper cash limits.

Deutsche Bank boss Cryan for cash abolition

Deutsche Bank boss John Cryan went one step further than the Berlin government deliberations. Only recently had he spoken out in favor of the abolition of cash. Cash only helps money launderers and other criminals to conceal their businesses, said Cryan at the World Economic Forum in Davos - and surprised with a daring thesis: cash will disappear in the next ten years. Because: "Cash is terribly expensive and inefficient."

>> Article in the "FAZ"

(APA / Red.)